Safe Online Paying - Tips & Information
Why is paying by credit card safer than paying by check, cash, or debit card?
If you pay by credit or charge card online, your transaction will be protected by the Fair Credit Billing Act. Under this law, you have the right to dispute charges under certain circumstances and temporarily withhold payment while the creditor is investigating them.
In the event of unauthorized use of your credit or charge card, you generally would be held liable only for the first $50 in charges. Some companies offer an online shopping guarantee that ensures you will not be held responsible for any unauthorized charges made online, and some cards may provide additional warranty, return and/or purchase protection benefits.
Can paying by credit card help in a dispute?
You may be able to dispute the seller's charges if the goods don't arrive or if you aren't satisfied with them and return them. However, under the federal Fair Credit Billing Act, you can only effectively dispute charges billed to your credit card (but that you have not yet paid) if ALL of the following are true:
Be aware that if you buy goods or services from a seller through a web site, there may be some legal uncertainty about where a dispute arose.
What are other reasons to pay by credit card?
You may save money by using a credit card if you pay it off in full when the bill arrives. Payments made by credit card allow you to keep the payment amount in your bank account, earning interest, until your credit card bill for those payments comes due.
In addition, some credit card issuers grant you extended warranties or other advantages for purchases made with the card.
If you pay by credit or charge card online, your transaction will be protected by the Fair Credit Billing Act. Under this law, you have the right to dispute charges under certain circumstances and temporarily withhold payment while the creditor is investigating them.
In the event of unauthorized use of your credit or charge card, you generally would be held liable only for the first $50 in charges. Some companies offer an online shopping guarantee that ensures you will not be held responsible for any unauthorized charges made online, and some cards may provide additional warranty, return and/or purchase protection benefits.
Can paying by credit card help in a dispute?
You may be able to dispute the seller's charges if the goods don't arrive or if you aren't satisfied with them and return them. However, under the federal Fair Credit Billing Act, you can only effectively dispute charges billed to your credit card (but that you have not yet paid) if ALL of the following are true:
- You have made a good faith attempt to resolve the dispute with the seller; AND
- The dispute involves the amount of $50 or more; AND
- The dispute arose within the state of your credit card billing address, or within 100 miles of your address; AND
- The seller of the goods (for example, a department store) has not issued the credit card that you used to pay.
Be aware that if you buy goods or services from a seller through a web site, there may be some legal uncertainty about where a dispute arose.
What are other reasons to pay by credit card?
You may save money by using a credit card if you pay it off in full when the bill arrives. Payments made by credit card allow you to keep the payment amount in your bank account, earning interest, until your credit card bill for those payments comes due.
In addition, some credit card issuers grant you extended warranties or other advantages for purchases made with the card.
Phone-In Option
Would you rather give your credit card information over the phone?
Some web merchants allow you to order online and give your credit card information over the phone. If you're more comfortable with this option, make a note of the phone number, company, the date and time of your call, and the name of the person who recorded your credit card number.
Some web merchants allow you to order online and give your credit card information over the phone. If you're more comfortable with this option, make a note of the phone number, company, the date and time of your call, and the name of the person who recorded your credit card number.
How can you protect against unauthorized use of your credit card account number?
You should only give your password and credit card number in a secure connection on a web site, not in ordinary e-mail.
Carefully and promptly check your credit card statements when they arrive. If you identify any irregularities, you should immediately bring these to the attention of the issuer of the credit card by telephone and in writing.
Do you need a separate credit card?
Consider dedicating a single credit card for online purchases. It will be easier for you to review your records. Also, should the security of this number be compromised, you'll still be able to use your other credit cards.
You should only give your password and credit card number in a secure connection on a web site, not in ordinary e-mail.
Carefully and promptly check your credit card statements when they arrive. If you identify any irregularities, you should immediately bring these to the attention of the issuer of the credit card by telephone and in writing.
Do you need a separate credit card?
Consider dedicating a single credit card for online purchases. It will be easier for you to review your records. Also, should the security of this number be compromised, you'll still be able to use your other credit cards.
Do other online payment options offer as much protection as a credit card?
When it comes to other types of payment options such as debit cards, money orders, cashier's checks, certified checks, teller's checks, and cash on delivery (C.O.D.), you'll find the level of protection isn't as high as with credit cards.
If paying by credit card is not an option, request that the goods be sent C.O.D. and make payment by check or money order, which is easier to trace than cash.
When it comes to other types of payment options such as debit cards, money orders, cashier's checks, certified checks, teller's checks, and cash on delivery (C.O.D.), you'll find the level of protection isn't as high as with credit cards.
If paying by credit card is not an option, request that the goods be sent C.O.D. and make payment by check or money order, which is easier to trace than cash.
BBBOnLine's Safe Shopping Site
- http://www.bbbonline.org/consumer/
Use The U.S. Better Business Bureau's (BBB) safe shopping site to locate companies that are members of their local Better Business Bureau, pledge
to meet the BBBOnLine Reliability standards for ethical online business practices and have agreed to resolve complaints using the BBB's dispute
resolution program or a similar program. Companies must live up to these promises or lose the right to remain in the program.
ePublicEye.com
- http://www.thepubliceye.com/
ePublicEye.com is an independent third party that allows consumers to rate e-businesses for reliability, privacy and customer satisfaction, using a
proprietary monitoring system called eConsumer Intelligence. The heart of the system is an interactive "seal and monitoring" feature that uses
customer feedback to let consumers identify companies that are reliable and committed to customer satisfaction.
Federal Trade Commission (FTC) - Consumer Information
- http://www.ftc.gov/ftc/consumer.htm
The Federal Trade Commission (FTC) works to ensure that the US markets are vigorous, efficient and free of restrictions that harm consumers.
To ensure the smooth operation of our free market system, the FTC enforces federal consumer protection laws that prevent fraud, deception and unfair business practices.
The Commission also enforces federal antitrust laws that prohibit anticompetitive mergers and other business practices that restrict competition and harm consumers.
Whether combating telemarketing fraud, Internet scams or price-fixing schemes, the FTC's primary mission is to protect consumers.
Internet Fraud Complaint Center (IFCC)
- http://www.ifccfbi.gov/
The Internet Fraud Complaint Center (IFCC) is a partnership between the Federal Bureau of Investigation (FBI) and the National White Collar Crime Center (NW3C).
IFCC's mission is to address fraud committed over the Internet.
For victims of Internet fraud, IFCC provides a convenient and easy-to-use reporting mechanism that alerts authorities of a suspected criminal or civil violation.
National Fraud Information Center (NFIC)/ Internet Fraud Watch (IFW)
- http://www.fraud.org/
The NFIC/IFW is operated by the National Consumers League, America's oldest nonprofit consumer organization.
NFIC/IFW's mission is to give consumers the information they need to avoid becoming victims of telemarketing and Internet fraud and to help them get their
complaints to law enforcement agencies quickly and easily.
SafeShopping.org
- http://www.safeshopping.org/
SafeShopping.org is a comprehensive guide to safe shopping online, compiled by the American Bar Association. Lots of great information about security, privacy,
payment options, consumer rights and more, as well as useful information on how to complain if you're not satisfied with your transactions.
